The recession didn't lift. City Hall didn't negotiate adequate concessions from public employees. An arbiter didn't rule on the validity of the city's declaration of fiscal emergency, the loophole through which City Hall cut labor costs. That big ball is still up in the air.

Meaning Stockton's fiscal crisis didn't ease.

Leaders didn't decide whether to privatize the library system. The Peace & Justice Network didn't find the money to put its radio station on the air.

Sass Bar & Grill, the restaurant supposed to replace Paragary's, didn't open, though its long-delayed launch appears to be days away (I have some questions about that deal. Visit my blog). The Lexington hotel didn't close escrow.

Of all the things that didn't happen, though, the most vexing is the failure of the city of Stockton to negotiate a contract buyout of IFG.

IFG manages Stockton Arena according to a stupid contract devised by a previous city manager who combined fiscal irresponsibility with ignorance of the entertainment business.

The contract overpays IFG for underperforming - for bringing too few events - while offering its owner, Chicago's Michael Reinsdorf, the option to stay on for 15 years.

Consequently, the Arena loses more than $2 million a year. Its red ink and failure to perform have convinced many Stocktonians that City Hall is not competent to manage redevelopment.

Or money. It gives the unions ammunition in concession negotiations: Why should we accept cuts when you're wasting money elsewhere?

And it doesn't help City Hall's cred that this situation was exactly the same last year.

Adding to the exasperation is that SMG, an industry giant, is waiting in the wings to take control.

This global powerhouse has the resources to put Stockton on the map and run the Arena - and all city venues - in the black. SMG can juice the city's fun factor way, way up, improve tourism and restart downtown's return.

Before we go any further, fairness compels me to add that Reinsdorf is abiding by the terms of his contract. Stockton brought this turkey on itself (and, thanks to the contract's absurd long term, created a zombie turkey).

So, what's holding up the buyout?

One thorny issue, Deputy City Manager Lori Montes said.

One IFG employee filed a grievance with the National Labor Relations Board. The grievance - which Montes can't detail - might result in an NLRB ruling that changes operating conditions at the Arena.

Reinsdorf wants the city to release him from any liability, Montes said.

The city, considering it improper to assume liability (making taxpayers liable) won't agree. Instead, the city has asked SMG if it will assume this possible operational cost so it can get the show on the road.

SMG is thinking that one over.

One stinkin' issue.

For most of the year, Reinsdorf kept moving the finish line in negotiations, Montes said.

"Our consultants have said they've never had so much trouble trying to hand somebody $2.3 million," Montes said.

Reinsdorf denied that. "We're not moving the finish line," he said. "It's taking longer than any of us anticipated. I'm very confident that sometime in January this exit situation will be finished."

One reason negotiations might soon conclude: Reinsdorf became president of the Chicago Bulls in October. He's got bigger fish to fry.

I asked Reinsdorf if he was aware that - through no fault of his own - the recession has pummeled Stockton so badly the city is slashing police and everything else. This city can ill afford to waste $2 million on Arena losses.

"I do care about the city of Stockton," Reinsdorf said. "I have friends in Stockton."

The Arena's red ink is unfortunate, Reinsdorf said. But, "If you look at the financials over the last few years, you'll see the losses have decreased every year."

A complicated buyout inevitably means lawyers and delays, Reinsdorf said. He ended with: "It's best we move forward as quickly as possible."